The Minister of State for Petroleum Resources, Heineken Lokpobiri, has emphasized that the responsibility for the timely renovation of state-owned refineries rests with the Nigerian National Petroleum Company Limited (NNPCL). This announcement follows inquiries from State House Correspondents after a three-day Cabinet Retreat in Abuja.
Lokpobiri highlighted the crucial role of NNPCL in overhauling major refineries, a project aimed at addressing fuel scarcity and reducing reliance on natural gas.
Despite investing $25 billion in refinery maintenance over the past decade, the facilities still operate below 30% of their potential output, as reported by the 9th National Assembly. The report recommended a forensic audit of these efforts and the rehabilitation of the Warri and Port Harcourt refineries, along with audits for the Kaduna refinery.
Lokpobiri confirmed that the rehabilitation of the refineries is in progress and discussed the timeframes. He noted that Phase 1 of the Port Harcourt refinery would be ready by the end of the year, and the subsequent phases are scheduled to be completed next year. The Kaduna refinery is also projected to be operational by the end of the following year.
The Minister underscored the significance of achieving a certain level of rehabilitation by year-end to enhance domestic refining capacity.
He addressed the influx of the Dangote refinery and various modular refineries that have received licenses. However, he identified a critical bottleneck, the availability of crude as feedstock for these facilities.
Lokpobiri expressed his commitment to streamlining the licensing process and holding license holders accountable for inactivity. He warned that licenses not put to use within the terms would be canceled.
The Minister emphasized that increasing crude production is the most viable solution to the nation’s fuel crisis. He shared his ambition to nearly double crude production, aiming for close to 2 million barrels per day before the year’s end. These efforts involve enhancing security, encouraging investment from international oil companies, and addressing fiscal and regulatory concerns to alleviate the current fuel crisis.
